Industrial policy
Industrial policy · LPG reforms · Make in India · PLI · Start-up India
What is India's industrial policy?
India's industrial policy is the framework governing manufacturing, running from the Industrial Policy Resolutions of 1948 and 1956, which reserved core sectors for the state, to the New Industrial Policy of 1991, which abolished licensing for most industries. Make in India was launched on 25 September 2014 and the Production Linked Incentive schemes cover 14 sectors with an outlay of ₹1.97 lakh crore.
Story hook
It is 25 September 2014, 4 months into Modi's first term. From Vigyan Bhawan, Delhi, PM Modi launches Make in India — featuring a stylised lion symbol by artist Bharat Sahu — with a target of manufacturing's share rising from 16% to 25% of GDP by 2022.
10 years later, in 2024, manufacturing's share has risen modestly to ~17% of GDP. Below original ambitions but with visible successes: iPhone exports $14 billion, PLI Schemes driving electronics + pharma + auto, defence indigenisation at 65%+, Vande Bharat trains + Tejas Mk-2 fighter showcasing indigenisation.
The story of India's Industrial Policy is the story of multiple shifts:
- 1948 & 1956 Industrial Policy Resolutions — public sector dominance under Nehru-Mahalanobis.
- 1991 New Industrial Policy — LPG liberalisation.
- 2014 Make in India — manufacturing renewal.
- 2020 Atmanirbhar Bharat + PLI Schemes — selective protectionism + incentivisation.
For UPSC, Industrial Policy is GS-III economy core; Mains GS-II governance topics overlap.
Why this matters for UPSC
For UPSC:
- Prelims: IPR 1948 + 1956 + 1991 + 2014 + 2020.
- Mains GS-III: Manufacturing share + employment + PLI design + industrial corridors.
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